On Thursday, the current level of risk in global markets was reminiscent of conditions seen in 2007 ahead of the Great Recession, ex-Treasury Secretary Larry Summers warned.
Summers detailed his concerns one day after the Bank of England was forced to intervene to stabilize the United Kingdom’s cratering economy. In mid-2007, signs of economic distress picked up steam before becoming a full-fledged catastrophe. The collapse of the US housing market due to the subprime mortgage crisis had a gushing effect that sank the global economy into its worst downturn since the Great Depression.
In the US, fears of an economic recession skyrocket as the Fed sticks with its planned regimen of sharp rate hikes to cool inflation.
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